The invention relates to a method for improving the water dispersibility and oxidation resistance of phytosterol. The method mainly includes the following steps: uniformly mixing phytosterol with an emulsifier and an embedding agent, extruding, cooling the obtained extruded material, and carrying out superfine grinding to obtain a phytosterol dispersant. The method has the advantages of simple process, no pollution, no loss of raw materials, low energy consumption, low cost, and effective prevention of the oxidation of a product in the preparation process, and the phytosterol dispersant prepared through the method has the advantages of good water dispersion, difficult oxidation and storage resistance, and can be added to beverages, dairy products, meat products, baked foods and quick frozen foods as a food ingredient.